Section 7

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Section 7: Mutual holding company; powers and duties

Section 7. A mutual holding company organized under this chapter may:

(1) invest in the stock of 1 or more banking institutions, as defined in section 1 of chapter 167A, or a limited purpose trust company, as defined in section 1 of chapter 167I, which conducts trust and fiduciary business but does not take deposits or otherwise carry on a banking business;

(2) acquire a mutual banking institution, a credit union, as defined in section 1 of chapter 171, a federal credit union, as defined in section 1 of chapter 171, a federal bank, as defined in section 1 of chapter 167, in mutual form and an out-of-state federal bank, as defined in section 1 of chapter 167, in mutual form through consolidation or merger of such institution with its subsidiary banking institution;

(3) merge with or acquire another state or federal mutual holding company or merge with and into or be acquired by another state or federal mutual holding company; provided, that any such mutual holding company shall have as 1 of its subsidiaries a subsidiary banking institution or a federally-chartered or state-chartered bank, which was in mutual form until it reorganized into a mutual holding company under federal law or the law of another state;

(4) merge with or acquire a bank holding company, as defined in section 1 of chapter 167A, or a company in stock form controlling 1 bank that was organized or converted to stock form; provided that the mutual holding company is the continuing entity;

(5) invest in a corporation, the purchase of the capital stock of which is permitted for a banking institution under state law;

(6) exercise any other power or engage in any activity permitted to a mutual banking institution chartered by the commonwealth;

(7) engage directly or indirectly only in such activities as are now or may hereafter be proper activities for bank holding companies under chapter 167A or by applicable federal law or regulations; and

(8) exercise any rights, waive any rights or take or waive any other action with respect to any securities of any subsidiary banking institution which are held by such mutual holding company.